First Solar Commissions Western Hemisphere’s Largest Solar R&D Center

Rhea-AI Summary

First Solar (Nasdaq: FSLR) has commissioned the Jim Nolan Center for Solar Innovation in Lake Township, Ohio, the largest solar R&D facility in the Western Hemisphere. This 1.3 million square foot center, part of a $500 million investment in R&D infrastructure, includes a high-tech pilot manufacturing line for full-sized thin film and tandem PV module prototypes.

The company also announced a new world record of 23.1% efficient CdTe cells, certified by NREL. First Solar plans to expand its global manufacturing capacity from 16.6 GW in 2023 to over 25 GW by 2026, with 14 GW in the US. These investments are expected to create about 300 new R&D jobs by 2025 and support an estimated 30,060 direct, indirect, and induced jobs across the US by 2026.

Positive

• Commissioned the largest solar R&D facility in the Western Hemisphere
• Achieved a new world record of 23.1% efficient CdTe cells
• Planning to expand global manufacturing capacity from 16.6 GW to over 25 GW by 2026
• Investing $500 million in R&D infrastructure
• Expected to create 300 new R&D jobs by 2025
• Projected to support 30,060 direct, indirect, and induced jobs in the US by 2026

Negative

• None.

Insights

Financial Analyst

First Solar's recent commissioning of the Jim Nolan Center signifies a substantial step forward in its commitment to R&D and thin-film photovoltaic (PV) technology. This aligns with the company's larger strategy to maintain its leadership in the solar industry, particularly in the thin-film segment. With an investment close to $500 million, this facility is expected to enhance innovation cycles, which could translate into more efficient, cost-effective solar products.

From a financial perspective, increased R&D spending often leads to enhanced product offerings and market competitiveness. First Solar's efforts to maintain a technological edge, especially through the development of high-efficiency CdTe cells, could result in higher revenue streams in the future. The company aims to boost its manufacturing capacity from 16.6 GW to over 25 GW by 2026, which indicates a significant growth trajectory. Additionally, the creation of approximately 300 new jobs adds an element of economic stimulation, particularly in Ohio.

However, investors should also weigh the associated risks. High R&D expenditures can strain financial resources, especially if the expected technological breakthroughs do not materialize. Moreover, the competitive landscape, especially with China closing the innovation gap, poses a challenge to First Solar’s market dominance. Therefore, while the investment is promising, it requires careful monitoring and assessment of quarterly financial results to ensure the return justifies the expenditure.

Market Research Analyst

First Solar's increased R&D capabilities and the new innovation center are strategic moves to solidify its market position in the solar industry. The establishment of the Jim Nolan Center for Solar Innovation is not just an infrastructural enhancement but a critical component in maintaining America’s lead in thin-film PV technology. This could give First Solar a substantial edge in developing next-gen tandem PV modules, considered the future of solar technology.

Market dynamics in the renewable energy sector are evolving rapidly, with a growing emphasis on efficiency and cost-effectiveness. First Solar's new facility could accelerate the development of more efficient thin-film and tandem modules, making them more competitive against silicon-based alternatives. This can broaden the company’s market appeal and potentially lead to increased adoption rates of its products, not only in the US but globally.

However, market acceptance will depend on several factors, such as the cost of new technologies and their comparative efficiency. The race with Chinese manufacturers remains a critical element; thus, First Solar must consistently push innovation boundaries to stay ahead. Moreover, the economic impact of supporting around 30,060 jobs by 2026, as projected, can play a significant role in garnering both public and investor support, enhancing the company's brand value and market influence.

Tech Expert

The commissioning of the Jim Nolan Center for Solar Innovation by First Solar represents a significant leap in solar technology development. This facility features a state-of-the-art pilot manufacturing line for thin-film and tandem PV modules, allowing for the real-world application of advanced R&D efforts. The achievement of a 23.1% efficient CdTe cell by First Solar is notable, pushing the boundaries of what is currently possible in solar efficiency.

Thin-film PV technology, particularly cadmium telluride (CdTe), offers several advantages over traditional silicon-based solar cells, including lower production costs and better performance under low-light conditions. The development of tandem PV modules, which layer multiple types of solar cells to capture a broader spectrum of sunlight, represents the next frontier in efficiency gains. This could pave the way for more compact and versatile solar solutions.

However, the technical challenges cannot be overlooked. Scaling up these advanced technologies from prototype to mass production without losing efficiency or cost-effectiveness is complex. The Jim Nolan Center’s capability to produce full-sized prototypes is a critical step in this direction, but it remains to be seen how quickly these innovations can be commercialized and whether they can meet market demands.

• Facility part of approximately half-billion dollar investment in US thin film R&D infrastructure
• Investment expected to reinforce America’s strategic leadership in thin film PV
• Announces new thin film world record with 23.1% efficient CdTe cells

TEMPE, Ariz. & PERRYSBURG, Ohio--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) today commissioned a new research and development (R&D) innovation center in Lake Township, Ohio, believed to be the largest facility of its kind in the Western Hemisphere. The Jim Nolan Center for Solar Innovation is dedicated to the late James “Jim” F. Nolan, a former member of First Solar’s Board of Directors and the architect of the company’s cadmium telluride (CdTe) semiconductor platform.

First Solar today commissioned a new research and development (R&D) innovation center in Lake Township, Ohio, believed to be the largest facility of its kind in the Western Hemisphere. The facility covers 1.3 million square feet and includes a high-tech pilot manufacturing line allowing for the production of full-sized prototypes of thin film and tandem PV modules. (Photo: Business Wire)

The facility covers 1.3 million square feet and includes a high-tech pilot manufacturing line allowing for the production of full-sized prototypes of thin film and tandem PV modules. Prior to the commissioning of the Jim Nolan Center, First Solar utilized a manufacturing line at its Perrysburg facility for its late-stage product development efforts. This arrangement limited the flexibility for development efforts and created constraints when mission-critical tools had to go offline. By resolving these limitations and constraints, the new facility is expected to accelerate innovation cycles.

"Thin films are the next technological battleground for the solar industry because they are key to commercializing tandem devices, which are anticipated to be the next disruption in photovoltaics," said Mark Widmar, chief executive officer, First Solar. "While the United States leads the world in thin film PV, China is racing to close the innovation gap. We expect that this crucial investment in R&D infrastructure will help maintain our nation's strategic advantage in thin film, accelerating the cycles of innovation needed to ensure that the next disruptive, transformative solar technology will be American-made."

The Jim Nolan Center is part of an approximately half-billion dollar investment by First Solar in R&D infrastructure, and the company expects to also commission a perovskite development line at its Perrysburg, Ohio, campus in the second half of 2024. The company, which has invested almost $2 billion in R&D, operates laboratories in Santa Clara, California, and Perrysburg, Ohio, in the US, and Uppsala in Sweden. Significantly, First Solar’s California Technology Center (CTC) in Santa Clara recently achieved a 23.1% efficient CdTe cell, a new world record certified by the National Renewable Energy Laboratory (NREL).

First Solar, founded in 1999 and celebrating 25 years of operations this year, is unique among the world's largest solar manufacturers for being the only US-headquartered company and for scaling the production of thin film solar panels. The company exited 2023 with 16.6 gigawatts (GW) of annual global nameplate manufacturing capacity and is expected to achieve over 25 GW of capacity by 2026. First Solar expects to commission new manufacturing facilities in Alabama in the second half of 2024 and Louisiana in the second half of 2025, bringing its total US nameplate capacity to 14 GW by 2026.

The company's ongoing and planned investments in the R&D infrastructure are projected to create approximately 300 new jobs by 2025, the majority of which will be located at the Jim Nolan Center. First Solar's investments in US manufacturing and R&D are believed to make it the most significant enabler of American jobs among solar manufacturers.

According to a recent study conducted by the University of Louisiana at Lafayette and commissioned by First Solar, the company supported an estimated 16,245 direct, indirect, and induced jobs in 2023, representing approximately $1.6 billion in annual labor income. As First Solar grows to an expected 14 GW in annual US nameplate capacity by 2026, it is forecast to support an estimated 30,060 direct, indirect, and induced jobs across the country, representing $2.8 billion in annual labor income. The study projects that every direct job First Solar supports in 2026 will support 7.3 jobs nationwide.

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film PV modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV modules. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

For First Solar Investors

This press release contains various “forward-looking statements” which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements concerning First Solar’s expectations that i) this innovation center will fast-track validation of technology and process; ii) this innovation center will optimize rates of learning and reduce commercial production line downtime; iii) the company will have over 25 GW of annual global nameplate capacity and 14 GW of US nameplate capacity by 2026; iv) the company will commission its new manufacturing facilities in Alabama in the second half of 2024 and Louisiana in the second half of 2025; and v) the company’s investments in R&D infrastructure will create approximately 300 new jobs by 2025. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on First Solar’s current expectations and First Solar’s projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. First Solar undertakes no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause First Solar’s actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission. This press release contains references to data and information generated by an economic study conducted by the Kathleen Babineaux Blanco Public Policy Center at the University of Louisiana at Lafayette. The economic study is based on numerous assumptions, estimates and other data as more fully described in the report summarizing the study’s findings, which is available at www.firstsolar.com/USeconomy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718000923/en/

Media

Reuven Proença

First Solar Media

reuven.proenca@firstsolar.com

Investors

Richard Romero

First Solar Investor Relations

investor@firstsolar.com

Source: First Solar, Inc.

FAQ

What is the name of First Solar's new R&D facility and where is it located?

First Solar's new R&D facility is called the Jim Nolan Center for Solar Innovation and is located in Lake Township, Ohio.

What is the size of First Solar's (FSLR) new R&D center?

First Solar's new R&D center covers 1.3 million square feet.

What new efficiency record did First Solar (FSLR) achieve for CdTe cells?

First Solar achieved a new world record of 23.1% efficient CdTe cells, certified by the National Renewable Energy Laboratory (NREL).

How much is First Solar (FSLR) investing in R&D infrastructure?

First Solar is investing approximately half a billion dollars in R&D infrastructure.

What is First Solar's (FSLR) expected global manufacturing capacity by 2026?

First Solar expects to achieve over 25 GW of global manufacturing capacity by 2026.